State Street Debuts Euro's First Saudi Bond ETF

State Street Global Advisors (SSGA) has launched Europe’s first fixed-income ETF offering targeted exposure to Saudi Arabia sovereign bonds.

The SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF (KSAB) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.37%.

KSAB uses a stratified sampling approach to replicate the JP Morgan Saudi Arabia Aggregate index of 40 liquid, US dollar and Saudi Riyal denominated government and quasi-government issuances, including Sukuk bonds.

The Euro Index Had a 100% Weighting

The index has a yield of 5.25%, a modified duration of 7.2 years and a 100% weighting to issuance with an A+ credit rating.

Emmanuel Laurina, head of Middle East, Africa and official institutions at SSGA, said: “We are pleased to offer investors cost effective access to the fast growing fixed income market in Saudi Arabia, one of the leading issuers of investment grade international bonds among emerging markets.

“As the Kingdom continues to diversify its economy through energy transition, infrastructure and other growth initiatives, we believe there are appealing investment themes for international investors to capture through a diversified exposure to Saudi bonds.”

KSAB’s launch follows the arrival of the $23 million Tabula GCC Sovereign USD Bonds UCITS ETF (TGCC)—capturing issuance from all six Gulf Cooperation Council (GCC) member countries—in January 2023.

'in the U.S., meanwhile, State Street has 137 ETFs traded on the U.S. markets, State Street Global Advisors ETFs have total assets under management of $1,286.35B. The average expense ratio is 0.27%. State Street Global Advisors ETFs can be found in the following asset classes: Fixed Income Equity Commodities Asset and Allocation Alternatives, the largest State Street Global Advisors ETF is the SPDR S&P 500 ETF Trust SPY with $532.44B in assets. 

This article was originally published on our sister site, etfstream.com.